CHAPTER 20 NTRODUCING NEW MARKET OFFERINGS. Companies need to grow their revenue over time by developing new products and expanding into new markets. New-product development shapes the company's future; improved or replacement products will maintain or build sales. Some companies put product innovation at the forefront of all they do. | PART CREATING SUCCESSFUL LONG-TERM GROWTH IN THIS CHAPTER WE WILL ADDRESS THE FOLLOWING QUESTIONS 1. What challenges does a company face in developing new products 2. What organizational structures are used to manage new-product development 3. What are the main stages in developing new products 4. What is the best way to set up the new-product development process 5. What factors affect the rate of diffusion and consumer adoption of newly launched products CHAPTER 20 INTRODUCING NEW MARKET OFFERINGS Companies need to grow their revenue over time by developing new products and expanding into new markets. New-praduct development shapes the company s future improved or replace-Iment products will maintain or build sales. Some companies put product innovation at the forefront of all they do 3M Company one of the most innovative . companies puts tremendous emphasis on new 3 M makes more than 50 000 products including sandpaper adhesives optical films and fiber-optic connectors it invests more than 51 billion annually in research and development with a staff of more than 6 000 scientists worldwide and launches scores of new products every year. In 2003 3M generated 18 billion in safes. The company s policy of allowing all employees to spend up to 15 percent of their time working on projects of personal interest helped to produce Post-it notes masking tape and 3Ms mrcrorepficatfen technofogy At the same 3M carefully monitors the u commercialization potential for new-product candidates making sure scientists and marketers collaborate early in the process and putting more resources behind the likely winners. SM s Golden Step Award program fion- ors 3M employees and team members who have developed significant new products product lines or markets and successfully generated at least 10 million in annual global sales within three years of product Introduction. A nsw. nnuwii tve 3M produci The 3M Paint Preparation System allows painters to paint al any angle help .
